The cash S&P500 continued its downward move yesterday, confirmed the break below the TD Demand Line (thin solid green line on today’s chart) and reached its initial price targets of the intermediate Gann moving average (blue line). Next are the Demand Line and TD Trend Factor (not Propulsion as mentioned yesterday) targets at 903 and then the weekly Intermediate moving average and a Fibonacci level near 888.
One should not expect these targets to be reached without intervening up days. Especially with Friday (quadruple witching) fast approaching the volatility may increase dramatically here. The purpose of this blog is not to identify short term trading opportunities but rather focuses on the intermediate swings. I currently have the opinion that equities have started their most significant pullback since the rally from the March 6 low began. The “proof”, so to speak, will be a weekly technical sell signal which we have to wait until Friday for (but seems increasingly likely).
Administrative note: I will be on holiday until the middle of next week.
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